ICT Time and Price in 13 Minutes

Summary

This video explains the concept of 'time and price' in trading, emphasizing its importance in strategy development. The presenter discusses how understanding different behaviors in price action at key times of the day can define a trader’s edge. Key topics include time-based price delivery arrays, manipulation at opening prices, and using kill zones to refine entries. The video also delves into how to use these concepts for selecting points of interest, establishing bias, and incorporating institutional order flow for better trading outcomes. The core message is that aligning time with price movements significantly improves trading success.

Takeaways

• 😀 Time and price are fundamental concepts in trading and should be understood in their entirety, beyond just terms like 'kill zones'.
• 😀 Kill zones are just one part of the broader time and price theory and are important for execution but not the whole picture.
• 😀 Time is just as important as price in trading, and understanding the relationship between the two is key to refining your trading strategy.
• 😀 Price action behaves differently at various times of the day, depending on when smart money or institutions are active.
• 😀 Identifying opening prices of higher time frame candles (like daily, weekly, and monthly) is crucial for spotting price manipulation areas.
• 😀 On bullish days, we want to see price action drop first before moving up, while on bearish days, the opposite should happen.
• 😀 Points of interest (POIs) are areas on the chart, like order blocks or fair value gaps, where price might reverse, and these should be analyzed based on the time they are created.
• 😀 Institutions' involvement in price action can be identified by checking the time and volume of price movements, especially during major market sessions like New York's Kill Zone.
• 😀 When determining a weekly bias, time and price patterns can complement the daily bias, with certain key price points expected to form between Tuesday and Wednesday.
• 😀 Daily biases can be complemented using time-based concepts, like observing price action just after the midnight open to gauge potential reversals for the day.
• 😀 Using tools like standard deviation fibs can help in understanding price moves, but it’s important to ensure the overall bias is correct to avoid false signals.

Q & A

What is the main concept of time and price in trading?

Time and price theory emphasizes that time is just as important as price in analyzing market behavior. Price actions exhibit different patterns at different times of the day due to the influence of institutional activity, and understanding these patterns helps traders better predict market moves.

What are kill zones, and how do they relate to time and price?

Kill zones refer to specific time periods during the trading day, such as the New York Kill Zone, when institutional activity is high. While kill zones are a part of time and price theory, they are just a small part of the larger picture, which includes understanding price behavior and manipulation at key times.

How can time and price help with bias problems in trading?

Time and price analysis helps establish a clear bias for trading by tracking institutional order flow at key times. This can aid in determining whether to take a bullish or bearish position, especially by identifying manipulation or liquidity grabs that align with the trader's bias.

What does the 'opening price' of higher time frame candles indicate?

The opening prices of higher time frame candles, such as daily, weekly, or monthly candles, are significant because they represent areas where institutional activity is likely to occur. Traders often look for price manipulation around these opening prices to inform their trading decisions.

What is the role of higher time frame points of interest in time and price theory?

Higher time frame points of interest, like order blocks, fair value gaps, and equal lows, are key areas where price may reverse or continue its move. These points are more significant if they align with institutional activity during key time periods, like the opening of a trading session.

How can traders use time and price to refine their entries and exits?

By understanding the relationship between time and price, traders can pinpoint more favorable entry and exit points. For example, a trader may wait for price manipulation during a kill zone and then enter at a higher probability point of interest, aligning with their overall bias.

What is the significance of understanding the time of day when selecting points of interest (POI)?

The time of day plays a critical role in determining the value of a point of interest. Points of interest created during times of high institutional involvement, such as the New York Kill Zone, are more likely to be significant compared to those formed during quieter times like the Asian session.

How can traders use standard deviation and fib tools in combination with time and price theory?

Traders can use tools like the standard deviation Fibonacci to estimate the likely movement of price based on historical price action during key times, such as the Asian range. This helps in determining potential entry points, particularly when price action aligns with expected behavior during critical trading hours.

How does time and price theory differ for various markets like Forex, indices, and crypto?

Time and price theory is more effective in markets like Forex, where price tends to follow clear patterns at specific times of day, such as during the London or New York sessions. For indices and crypto, the theory still applies, but the dynamics can be less predictable due to different market structures and volatility.

Why is it important to combine time and price theory with other market analysis techniques?

Combining time and price theory with other techniques, such as technical analysis and institutional order flow tracking, enhances a trader’s ability to define their edge. Time and price analysis is a valuable tool, but its effectiveness increases when used alongside a broader trading strategy that includes bias, trend analysis, and liquidity awareness.